Royal Mail warns on competition as profits rise

Royal Mail has reported a rise in operating profits in its first set of full-year results since floating on the stock market.

Profits at the group have increased 12% from £598m a year ago to £671m, boosted by a rise in revenues from its parcel delivery business and a modest increase in sales. Sales were up 2% to £9.46bn, while revenues in the parcel delivery business rose 7%. However, the group saw flat parcel delivery volumes and a 4% drop in letter delivery volumes, better than the predicted 6%, but still a potential threat to the business. The increase in profits comes after the group floated its shares on the UK market, despite the move being widely criticised for undervaluing the business with the fl...